Repository: UIHistories Project: Board of Trustees Minutes - 1990 [PAGE 222]

EXTRACTED TEXT FROM PAGE:

210

BOARD OF TRUSTEES

[March 14

Auxiliary Facilities System, Series 1991 Revenue Bonds

(11) T h e vice president for business and finance, in order to sustain progress towards the issuance of revenue bonds to finance a number of additions and improvements to the Auxiliary Facilities System, recommends that the board authorize the vice president for business and finance: 1. To engage the firm of Morgan Stanley & Co., Inc. as senior managing underwriter 1 for the anticipated Series 1991 Revenue Bond Issue. Morgan Stanley may engage other firms, with University approval, as comanagers to assist in marketing the issue. T h e underwriting fee will not exceed 1.5 perceent of the bond principal, and will be paid from that principal; 2. To prepare a preliminary Official Statement, a Bond Resolution, and any other documents required prior to the issuance of bonds; 3. To seek and secure bond ratings from the rating agencies; and 4. To include the following list of projects and budgets as the intended additions and improvements to be funded by the Series 1991 Revenue Bonds. Additional actions will be required at a future date to finalize the authorization to proceed with the sale of bonds. I concur.

Proposed Projects

Chicago campus Taylor-Wood Street Parking Structure Addition Single Student Residence (SSR) Rejuvenation Program Student Residence and Commons Addition (SRC) Paulina Street Parking Structure (PSPS) Repair Land Acquisition Subtotal Urbana-Champaign campus Parking Program Memorial Stadium Renovation, Phase I Campus Bookstore Armory Track Replacement Outdoor Tennis Facilities Intramural-Physical Education (IMPE) Building Air Conditioning Illini Union Patio Enclosure Housing Division Common Areas Improvement Campus Recreation Center — East Addition Assembly Hall Parking Lot Renovation, Phase I Subtotal Total Circle Court2 Grand Total (millions) $ 6.8 3.2 12.3 3.6 2.1 $28.0 $ 6.5 18.0 8.0 1.2 1.5 0.9 1.5 2.3 0.6 1.5 $42.0 $70.0 $12.0 $82.0

1 A Request for Proposal for underwriting services was sent to 23 major national and Illinoisbased investment banking firms. T h e request asked for information including the firms' experience, particularly in structuring and marketing issues for colleges and universities, specific individuals to be assigned to this issue, underwriting fees and spreads, marketing strategy, and the financial condition of the firm. Seventeen firms responded with proposals. T h e responses were evaluated by the University staff and the financial advisor, John Nuveen & Co. Incorporated. Five firms were selected to be interviewed by the University and the financial advisor. A recommendation of the firm to be appointed as senior managing underwriter will be presented at the board meeting. 2 T h e bond issue may include the Circle Court project (approximately $12 million), already approved by the Board of Trustees.